Does the California addendum to the Aerus Disclosure Document supersede any other part of the document?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement requires application of the laws of the State of Texas. This provision may not be enforceable under California law.
The maximum interest rate in California is 10% annually. We do not offer financing to California franchises.
Neither the Franchisor nor any person listed in Item 2 of this offering circular is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
OUR WEBSITES (www.aerusonline.com and www.beyondbyaerus.com) HAVE NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT dfpi.ca.gov.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the California addendum does, in some instances, supersede other parts of the document. Specifically, a provision states that no statement or acknowledgment signed by a franchisee can waive claims under California franchise law, including fraud, or disclaim reliance on statements by Aerus. This provision overrides any conflicting terms in other documents related to the franchise agreement. Additionally, the FDD notes that the franchise agreement requires application of Texas law, but this may not be enforceable under California law. The maximum interest rate in California is 10% annually, and Aerus does not offer financing to California franchises.
This means that while the standard Aerus franchise agreement might have certain clauses, the California addendum ensures that franchisees in California retain their rights and protections under California law. This is a crucial point for prospective franchisees in California, as it clarifies which laws and regulations govern their franchise agreement.
Furthermore, the FDD states that Aerus's websites have not been reviewed or approved by the California Department of Financial Protection and Innovation, and any complaints about the website's content can be directed to that department. This disclosure highlights the importance of verifying information independently and understanding that the California addendum takes precedence over conflicting terms in other documents, including the franchise agreement itself.